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Contractors on major road projects sought €850m over agreed prices


Cost disputes
Construction sources say the process is characterised by adversarial cost disputes, leading to lengthy arbitration and expensive legal proceedings. As the State prepares to spend more than €100 billion as part of Project Ireland 2040, Mr Walsh warned the public works contract wouldn’t work for so-called “mega-projects”.
“This type of public works contract would not be appropriate for mega-projects like the Metrolink,” he said. Two other types of contract – a New Engineering Contract (NEC) and a so-called “Fidic” contract – would be more appropriate, he said.
TII has used these contracts on a trial basis, and the approval process to allow them be considered as an option for infrastructure projects is under consideration, having been supported by the Office of Government Procurement.

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